StockEdge.com
  • Products
    • StockEdge Premium
    • StockEdge Pro
    • StockEdge Club
  • Stories
StockEdge Blog
  • Trending Stocks
  • Insights
  • Technical Analysis
  • Fundamental Analysis
  • StockEdge Tutorials
  • Mutual Fund
No Result
View All Result
  • Trending Stocks
  • Insights
  • Technical Analysis
  • Fundamental Analysis
  • StockEdge Tutorials
  • Mutual Fund
No Result
View All Result
StockEdge
Home Insights
Top 4 drone stocks in india

Top 4 Drone Stocks in India

Vineet Patawari by Vineet Patawari
March 29, 2025
Reading Time: 10 mins read
11.2k
VIEWS
Share on FacebookShare on XShare On WhatsApp

Table of Contents

  • Rising Horizons: How Drone Stocks Are Soaring Globally and in India
  • Value Chain Analysis of the Drone Stocks
  • How will India become the Global Hub for Drones?
  • Top 4 Drone Stocks in India
    • Zen Technologies
    • Paras Defence & Space Technology
    • Drone Destination Ltd.
    • Ideaforge Technology Ltd.
  • The Bottom Line

Imagine how long it typically takes to deliver a parcel over a 46-kilometer distance. Most of you say it could take 1-2 days, but what if your mail arrives faster than your lunch?

This isn’t science fiction. It is a reality in India. In May 2022, a parcel jetted 46 kilometers in just 25 minutes, marking a historic first for India’s postal service.

How did this remarkable event happen?

The key to this new reality in India is drone delivery. Today, drone stocks are steadily rising as the use of drones expands across various industries. Their uses have been notably prevalent in non-commercial fields such as aerial photography, land surveys, agriculture, mining, disaster management, construction, and national highway and railroad track mapping.

In this blog, we will discuss the value chain analysis of drone stocks, explore why this sector continues to shine day by day, and determine which drone stocks in India are part of this thriving industry.

Rising Horizons: How Drone Stocks Are Soaring Globally and in India

Drones, commonly known as Unmanned Aerial Vehicles (UAVs), started off being used for defence purposes and are now increasingly used in civilian space. According to the Federation of Indian Chambers of Commerce and Industry (FICCI), this sector has the potential to transform many sectors and could contribute 4-5 % to India’s GDP due to the multiplier effect.

According to the Economic Survey 2023-2024, around ₹595 crore are invested in drone and drone components under the PLI (Production Linked Incentive) Scheme, reflecting the government’s commitment to fostering innovation and manufacturing in this space.

01

As of March 2024, over 200 drone tech startups were operating in India, indicating a thriving and innovative ecosystem. Moreover, substantial investments totalling over US$83 million from January 2016 to November 2023 have fueled the market’s expansion and innovation.

Number of registered drone in india from 2021-2023

Even the global drone industry grew at a CAGR of 19% from CY18-22 and is projected to reach ~US $51.4 billion in CY27 and ~US $91.3 billion by CY30, with a CAGR of 20%.

Understand the growth of global drone market size

Now, look at how this drone company works by highlighting its value chain analysis.

Value Chain Analysis of the Drone Stocks

The Indian UAV market works in a systematic approach. It begins with Aircraft Hardware, which develops and manufactures critical components such as batteries, gimbals, and sensors. The next step is Operations, which entails establishing the required infrastructure and mechanisms for safe and effective drone management. Following that comes the Services segment, which provides a variety of support tasks that benefit the UAV ecosystem. Finally, the process concludes with End Users, who are the ultimate users of drones and related services in a variety of industries, including defence, agriculture, construction, and mining.

Here’s the image that depicts how this sector works.

Value chain analysis of drone stocks in india

The value chain of drone stocks in India includes both manufacturing and value-added service components. According to EY FICCI data, around 55% of worldwide investments are made in the manufacturing side, with the remaining value invested in the value-added spectrum.

Understand global drone investment breakdown

To comprehend the drone sector’s mechanism, it is important to look at how India will position itself to become a global drone hub and an appealing investment opportunity. By analyzing India’s strategic investments, supportive regulation, and developing ecosystem, you can observe how these elements promote innovation and provide investment prospects in drone stocks.

How will India become the Global Hub for Drones?

India is shifting its focus from ‘Make in India’ to ‘Make for the World.’ The Indian drone industry is expected to generate USD 40 billion in revenue by 2030, expanding at a 37% CAGR.

But how?

Let us look at the factors which bolster the significant growth potential and favorable environment for drone stocks in India.

  • Drone Rules 2021: In August 2021, the government introduced the ‘Drone Rules 2021’, which, after extensive consultations with stakeholders, created a more liberalized regulatory framework. As of 7th August 2024, there are 24,122 drones registered with a Unique Identification Number (UIN).
  • DigitalSky Website: The government launched the DigitalSky website, which features an airspace map divided into green, yellow, and red zones. More than 90% of the Indian airspace is in the green zone, which signifies free-to-fly zones, eliminating the need for operational approval from local authorities before conducting drone operations.
Airspace map for drone operation in india
  • Production-Linked Incentive (PLI) Scheme: In the fiscal year 2021-2022, the government allocated ₹ 120 crores for a Production-Linked Incentive (PLI) scheme aimed at fostering growth in drone and drone component manufacturing. This commitment has continued to rise, with the interim budget for 2024 featuring an allocation of ₹ 57 crores specifically for drones and drone components under the PLI scheme. This represents a significant increase of 72% compared to the previous year’s allocation of ₹ 33 crores. 
  • Ban on Drone Imports for Commercial Use: A notification from the Directorate General of Foreign Trade (DGFT) has banned the import of drones for commercial applications, with exceptions for R&D, defence, and security purposes. This move aims to increase the market share of domestic drone manufacturers and tap into the potential of the domestic market. 
  • Various Government Schemes have been launched: A significant part of the drone companies’s exponential growth has been attributed to various government initiatives and laws that encourage local drone manufacture. List of Government Schemes:
    • Drone Shakti Scheme
    • Mission Raksha Gyan Shakti
    • PM Kisan Drone Yojana
    • Namo Drone Didi Yojana


These factors create a favorable environment for innovation and investment and also highlight promising opportunities within the drone sector. Many other sectors are also entering this space; for instance, Yamaha Motor India Pvt. Ltd., a subsidiary of the Japanese multinational, began selling multi-rotor drones for crop monitoring in 2018 to meet growing demand in Japan.

So, it’s important to focus on identifying and investing in potential drone companies in India to capitalize on the sector’s growth and diversification. Let’s look at the various drone stocks and assess their potential to invest.

Top 4 Drone Stocks in India

Zen Technologies

The company experienced significant revenue growth, increasing from ₹132.45 crore in Q1 FY24 to ₹254.62 crore in Q1 FY25. This represents substantial year-on-year growth. Operational EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) has shown strong growth, indicating improved operational efficiency. EBITDA margins have also expanded. The total order book stands at Rs 1158.54 crore, mainly consisting of training simulators and anti-drone systems. The company spent ₹6.69 crore on R&D. Zen Technologies is a integral part of Nifty Smallcap 250 Index

Zen financial summary from stockedge

Paras Defence & Space Technology

Paras Defence and Space Technologies, with its extensive 40-year history, operates in two main sectors: Optics & Optronic Systems and Defence Engineering. The company also has a significant presence in the drone industry through its subsidiaries. Paras Anti-Drone Solutions focuses on developing radio frequency (RF) and microwave systems for countering uncrewed aerial vehicles (UAVs), while Paras Aerospace provides drone services and related technologies.

In Q1 FY25, Paras Defence and Space Technologies reported revenue of Rs 83.57 crores, marking a ~5% increase from last quarter. The order book showed a substantial increase, up 60.31% from Rs 393 crores in FY23 to Rs 630 crores in FY24, indicating a robust pipeline of future business. To know more about this company, you can read our blog, Top 5 Defence Stocks in India.

Paras defence and space technologies ltd. Financial summary

Drone Destination Ltd.

Drone Destination Ltd. went public on the NSE SME (Small and Medium Enterprises) zone on July 21, 2023. They reported impressive financial growth for the year ending March 31st, with revenues soaring from INR 12.07 crores to INR 32.62 crores (170% increase). EBITDA grew significantly, reaching INR 13.86 crores with an improved margin of 44%. PAT also saw substantial growth, climbing to INR 7.08 crores. Despite a 153% rise in expenses, the company managed efficient cost control.

Drone destination ltd. Financial summary

Ideaforge Technology Ltd.

Ideaforge Technology Limited is a market leader in the Indian drone market and has also been ranked 5th globally in the dual-use category (civil and defence) drone manufacturers.

In Q1 FY25, they reported revenues of ₹86.2 crores, a decline of 11.2% YoY compared to ₹97.1 crores in Q1 FY24. The net profit also dropped sharply by 93.8%. The order book witnessed a significant decrease, ending the quarter at ₹54.2 crores, expected to be executed by Q2 and Q3 of FY25. However, the company invested ₹16.5 crores in research and development, reflecting its commitment to innovation. With an execution capacity of approximately 10,000 drones per year, they continue to maintain a strong production capability.

Ideaforge technology ltd. Financial summary

However, In FY24, they demonstrated strong growth in net sales, PBIDT, and net profit. They also made substantial strides in Q1 FY25, securing five new patents and successfully completing early adopter programs and demonstrations in the U.S., which have the potential to convert into orders.

Ideaforge technology ltd. Edge report

To know more about these drone stocks, read our Edge Report.

The Bottom Line

The rapid growth of drone technology, combined with India’s promising regulatory environment, marks a transformative era in drone stocks. The future of aviation services in India depends on the expansion of the Maintenance, Repair, and Operations sector and the growing drone stocks in India. With liberalized regulations and incentives, India aims to become a global drone hub by 2030. Recent developments include more training organizations, remote pilot certifications, registered drones, and permitted drone models.

The Indian government has also taken various measures to expand drone stock. According to Ministry of Civil Aviation projections, the drone manufacturing business will grow from ₹ 60 crore in FY 2020–21 to ₹ 900 crore in FY 2025.

To sum up, the drone stocks in India are far more than just a technological marvel. They are a vital industry that is defining the future of various industries. Drones stocks will play an increasingly vital part in India’s economic environment as the sector continues to grow, innovate, and make strategic investments

Happy Investing!

Tags: Fundamental analysisQuarterly Resultsstock insightstrending stocks
ShareTweetSend
Open A Zero Brokerage Account In Kotak Open A Zero Brokerage Account In Kotak Open A Zero Brokerage Account In Kotak
Previous Post

Top 3 Geopolitical Risks for Stock Market: How to tackle them?

Next Post

Taxation on Mutual Funds in 2024

Vineet Patawari

Vineet Patawari

Vineet is the co-founder of Elearnmarkets. He assumes the role of CEO and his job is to help the team get their job done. Vineet drives the growth strategy and its execution through product innovation, product marketing and brand building. He is dedicated to building high performance teams and enjoys being actively involved in problem solving for business growth. Vineet, an IIM Indore Alumnus is also a Chartered Accountant and his interests include digital marketing, blogging on recreational mathematics, travelling and has a passion for teaching. When not at work, he loves spending time with his two lovely sons Arham & Vihaan and his wife Preeti.

Next Post
Tax on mutual funds 2024

Taxation on Mutual Funds in 2024

Investing vs trading in share market

Investing Vs Trading in the Share market: Understanding the Difference

Top 4 metal stocks to invest in 2024

Top 4 Metal Stocks in India

Disclaimer

StockEdge (Kredent InfoEdge Pvt. Ltd.) is a SEBI-registered Research Analyst (RA) entity (SEBI Registration No: INH300007493). The information provided in this article is for educational and informational purposes only and should not be considered as an offer to buy or sell any securities or investment products.

The stocks, securities, and investment instruments mentioned herein are not recommendations under SEBI (Research Analysts) Regulations, 2014. Readers are advised to conduct their own due diligence and seek independent financial advice before making any investment decisions.

Investments in securities markets are subject to market risks. Please read all related documents carefully before investing. Investing in Equity Shares,
Derivatives, Mutual Funds, or other instruments carry inherent risks, including potential loss of capital. StockEdge (Kredent InfoEdge Pvt. Ltd.) does not provide any guarantee or assurance of returns on any investments. Past performance is not indicative of future performance.

Contact Us
  • Timing (Mon-Sat): 10 am to 7 pm
  • Sales: +919830994463
  • Support: +919830994402
  • Club Support: +916289906895
  • Affiliate: +917003567131
Recent Posts
Check out the Top 3 Consumption Stocks in India
Top 3 Consumption Stocks in India
Ather Energy IPO: All You Need to Know
Ather Energy IPO: All You Need to Know
Important Links
  • StockEdge.com
  • StockEdge Premium
  • StockEdge Pro
  • StockEdge Club
  • Compare Plans
An Initiative Of
Logo of KREDENT INFOEDGE with SEBI Registration no.

© 2025 Kredent InfoEdge Pvt Ltd.

Facebook-f Twitter Instagram Linkedin-in Youtube Pinterest-p Whatsapp Telegram

Get StockEdge App

No Result
View All Result
  • Home
  • Article Categories
    • Trending Stocks
    • Insights
    • Technical Analysis
    • Fundamental Analysis
    • StockEdge Tutorials
    • Mutual Fund
  • Stories
  • Products
    • StockEdge Premium
    • StockEdge Pro
    • StockEdge Club
  • Visit StockEdge.com

© 2024 Kredent InfoEdge Pvt Ltd.

Last day to get 50% off on Premium plan.